The global halal ingredient market size is estimated to reach USD 3,35,014 million in 2024. Global demand for halal ingredients is projected to increase at a CAGR of 3% during the assessment period, with total market value reaching USD 4,51,467 million by 2034.
Players in this sector are serving specific requirements for the global Muslim population, which is poised for continuous expansion. By complying with the Islamic dietary guidelines, players are developing food and beverage ingredients like flavorings, emulsifiers, enzymes, and starches. By following these principles, players are ensuring ethical sourcing, processing, and compliance with religious requirements.
Economies, especially those with prominent Muslim populations, are expanding and growing, which indicates a rise in disposable income. This allows customers to prioritize halal options, thereby boosting the demand for compliant ingredients.
Customers are also seeking halal certifications, which are increasingly being considered a symbol of safety, quality, and ethical production. This is yielding appeal for the products in the broader market.
Global Halal Ingredient Industry Assessment
| Attributes | Description |
|---|---|
| Estimated Size, 2024 | USD 3,35,014 million |
| Projected Size, 2034 | USD 4,51,467 million |
| Value-based CAGR (2024 to 2034) | 3% |
Adventurous steps taken by authority figures, companies, and professionals in the halal ingredient sector are promoting the sector’s growth. In June 2024, for instance, the Taiwan External Trade Development Council (TAITRA) organized CHEF’S TABLE in Taipei at the Howard Plaza Hotel. This cooking event was a culinary adventure with halal ingredients used in Taiwan.
The show featured celebrity chefs from Malaysia, Indonesia, and Taiwan. They used Taiwan's Halal-certified products to innovate delicious dishes. Taiwan's dynamic approach to the budding halal market via cultural exchange and culinary innovation was highlighted in this event.
The Prime Minister of Malaysia, who perceives significant growth for halal products, is urging Bumiputera entrepreneurs to extend their footprint in the worldwide halal export market. There are substantial possibilities for players, not just in Malaysia but across the world, in segments like cosmetics, pharmaceuticals, and ingredients.
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A Move Toward the Greater Functionality and Variety to Serve the Modern Customers
Players are innovating halal ingredients to serve the evolving demands of today’s customers. People are searching for halal options that meet specific dietary restrictions, such as organic, gluten-free, or vegan. This exhibits the desire for inclusivity in the halal industry.
The rising interest in functional ingredients that mix the halal certification with health benefits is further favoring the industry. The trend is propelled by the health-conscious Muslim population, which is looking for holistic and convenient ways to maintain well-being.
Sustainability and Ethical Sourcing Gains Ground in the Sector
Manufacturers and customers both are becoming increasingly concerned about sustainability. This is affecting the halal ingredient market as companies are looking to source ingredients with the least environmental impact and in an ethical manner.
Players are focusing on factors like minimizing water usage, responsible farming practices, and diminishing waste produced across the supply chain. By keeping sustainability as a priority, firms are not only catering to eco-conscious consumers but also ensuring the long-term viability of the resources required for halal food production.
Challenges in the Halal Ingredient Sector
The sector is faced with the restrictions associated with the processing of ingredients. This includes the avoidance of cross-contamination with non-halal ingredients across the production process.
Companies need to employ cleaning procedures, dedicated equipment, and clear labeling to ensure customer trust. These and many other restrictions, while mandatory for religious adherence, require meticulous processing, sourcing, and certification to navigate the target sector.
Global sales of halal ingredients recorded a CAGR of 3.1% during the historical period. The global halal ingredient market value at the end of 2023 reached around USD 3,04,558 million.
During the historical period, halal products gained significant traction among a broader audience. Certain governments also implemented stringent regulations for halal certification. This developed a wider market for halal ingredients as companies complied and met consumer expectations.
Over the forecast period, the sector is projected to observe a CAGR of 3%. Global revenue is projected to increase from USD 3,35,014 million in 2024 to USD 4,51,467 million by 2034.
The sector is driven on the back of the expanding Muslim population, which is naturally raising the demand for halal food and beverages, and consequently, halal ingredients. Customers are also becoming more interested in knowing about the source and production process of their food, which is benefitting the growth.
Players are also emphasizing the traceability of the products throughout the supply chain, allowing customers to keep track of the origin and processing of ingredients. Increasing focus on sustainability too is fueling halal ingredient market growth.
Principal Consultant
Tier 1 companies, having worldwide recognition, enjoy a pool of established resources. These companies are estimated to account for a gigantic 45% market share. These players are well-positioned to use existing supply chains. They are using extensive global networks to source new materials to develop finished products.
Their power to scale the production allows them to develop standardized halal ingredients. Further, these companies are allocating funds for researching and developing new halal ingredients. These players are also leveraging their brand recognition to create trust among consumers for their halal offerings.
Tier 2 companies hold a 20% share in the halal ingredient market. These players have a strong advantage in grasping the specific needs and preferences of certain halal ingredients in their region of expertise. These small-sized companies are quick at decision-making and adapt quickly to changing market trends. Thus, allowing for faster company growth.
Tier 3 companies, having a local presence in the industry, account for 35% value share. Their close understanding of the halal ingredient market is serving the dietary preferences and culinary traditions practiced in that region. They are heavily investing in marketing and branding.
The below section is dedicated to the top countries in the industry. The growth rates in the following nations are almost the same. However, Italy is exhibiting slightly better performance than the rest of the nations.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 2.9% |
| Germany | 3.1% |
| Italy | 3.6% |
| India | 3.2% |
| China | 3% |
Demand for halal ingredients in the United States is projected to expand at a 2.9% CAGR through 2034. The steadily rising Muslim population in the nation is creating a wider consumer base for halal products, including immigrants and American-born Muslims.
Perceived higher quality standards associated with halal certification are also fueling the adoption of halal ingredients. A growing understanding of halal food principles, even among non-Muslims is creating a significant market for halal ingredients.
Sales of halal ingredients in Italy are anticipated to increase at a 3.6% CAGR over the forecast period. The emerging desire for halal cosmetics composed of pure and permissible ingredients among the Italian population is raising the demand for certain halal-compliant components.
Companies are no longer restricted to only meat products. They are expanding their innovations to serve the dietary preferences and requirements of the Muslim community. This includes plant-based functional ingredients, alternatives, and cuisine-specific halal products.
In India, people are increasingly investing in halal products, especially the widely growing Muslim population. This is providing the momentum for this sector to grow at 3.2% CAGR over the forecast period.
The expanding demographic, driven by birth rates, conversions, and migration is creating the demand for halal food and beverages, which is raising the demand for halal ingredients. The growing interest in halal products among Muslim and non-Muslim customers is spurring product sales.
Surging educational efforts by Islamic organizations and rising targeted marketing campaigns by halal food firms are creating awareness about halal products and their benefits. This is proving to be beneficial for the sector’s growth.
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The following segment casts a bright light on leading segments in the halal ingredient industry. Based on application, the food ingredients segment is projected to acquire a value share of 65.4% by 2024. The food processing segment will likely account for a revenue share of 61% in 2024.
| Segment | Food Ingredients (Application) |
|---|---|
| Value Share (2024) | 65.4% |
The food ingredient segment is expected to account for a 65.4% share by the end of 2024. The segment has a significant hold in this industry. The substantial demand for halal food ingredients, especially from Asia Pacific, is boosting segment growth.
Certain factors are making a positive impact, such as rising cognizance about halal ingredients present across the market via advertising efforts and extensive marketing by producers. Heightened demand for food ingredients has a key role to play in the maturing halal ingredient industry.
Rising intrigue for new halal product launches is also positively impacting the segment’s expansion. Players are further establishing a strong distribution channel for these products. The advent of eCommerce especially has played a significant role in raising the sales of halal food ingredients.
| Segment | Food Ingredients (End Use) |
|---|---|
| Value Share (2024) | 61% |
Food processing sector is expected to generate substantial demand for halal ingredients during the assessment period. This is attributable to growing usage of these ingredients for manufacturing a wide variety of processed halal food products.
Due to busy lifestyles, consumers especially in regions like Middle East and Asia are seeking processed halal food items, consequently uplifting halal ingredient demand. As per the latest analysis, the food processing segment is forecast to account for a revenue share of around 61% in 2024.
Key players in this sector are employing innovative strategies to stay ahead of their peers. The top-most strategies used by players include innovation and the launch of new halal-certified ingredients that meet the demands of food and beverage manufacturers. This involves the development of plant-based alternatives, ingredients for specific dietary requirements, and functional ingredients with healthy constituents.
For a wider reach, players are broadening their operations to unexplored regions with significant Muslim populations. Places in the Middle East and Southeast Asia are the key examples. Further, the acquisition of smaller players to exercise greater expertise is expanding the halal ingredient market.
Players are also coming into collaborations with local companies and established halal certification bodies to streamline the certification process. This further opens ways to strengthen the distribution networks.
Participants are also emphasizing on traceability of their production of halal ingredients. This assures customers about the good quality of products and also allows the tracking of origin and processing of ingredients.
Industry Updates
Various applications of the product are food ingredients, the beverage industry, the cosmetic industry, and the pharmaceutical. The food ingredients segment is further divided into thickening agents, sauces and marinades, flavors, sugar substitutes, and others.
The beverage industry is segmented into coffee, tea, concentrated beverages, and juices, soft drinks, and health and nutritional drinks. The cosmetic industry is categorized into body and skin care, oral care, fragrance, and hair care. The pharmaceutical sector further is bifurcated into active pharma ingredients and excipients.
In terms of end use, the industry is bifurcated into HoReCa and food processing.
Halal ingredient market analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, the Middle East and Africa, and Oceania.
The industry is estimated to be valued at USD 3,35,014 million in 2024.
The sector is estimated to progress at a 3% CAGR through 2034.
The global industry value is set to total USD 4,51,467 million by 2034.
Italy is anticipated to record a CAGR of 3.6% through 2034.
The food ingredients segment holds a significant share in this sector.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Application 6.2. End Use 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 7.1. Food Ingredients 7.1.1. Sauces and Marinades 7.1.2. Thickening Agents 7.1.3. Sugar Substitutes 7.1.4. Flavors 7.1.5. Other Food Ingredients 7.2. Beverage 7.2.1. Coffee 7.2.2. Tea 7.2.3. Concentrated Beverages and Juices 7.2.4. Soft drinks 7.2.5. Health and nutritional drinks 7.3. Cosmetic Industry 7.3.1. Body and skin care 7.3.2. Oral care 7.3.3. Fragrance 7.3.4. Hair care 7.4. Pharmaceutical 7.4.1. Active Pharma Ingredients 7.4.2. Excipients 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 8.1. HoReCa 8.2. Food Processing 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. South Asia and Pacific 9.5. East Asia 9.6. Middle East and Africa 10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Sales Forecast 2024 to 2034 by Application and End Use for 30 Countries 17. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 18. Company Profile 18.1. Nestlé S.A 18.2. ADM (Archer Daniels Midland) 18.3. Ingredion 18.4. AB Mauri Malaysia Sdn. Bhd 18.5. BASF SE 18.6. Ashland Inc. 18.7. Givaudan 18.8. Kerry 18.9. Kingherbs Limited
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Halal Ingredient Market
